Brutal crash in Hungarian property market: unpredictable future
Prices rose again on the Hungarian property market in the first quarter of 2023, accompanied by a strong fall in sales, according to the latest housing market reports from the Hungarian Central Statistical Office and the central bank (MNB). According to an expert, autumn will be the earliest time to see whether this is just a slowdown in the downturn, or whether a recovery in sales could start to take hold this year.
Huge decline in demand
The first quarter of this year has not seen a halt to the decline in demand that started last year. According to the latest report of the Hungarian Central Statistical Office (KSH), the number of property sales was 31 percent lower than a year earlier, OTP Ingatlanpont said in a statement.
This decline affected the new and second-hand housing markets in similar proportions. At the same time, established prices have started to rise again after falling in the previous quarter. New builds accounted for the bulk of the 2.5 percent average increase (6%), but second-hand homes also saw nominal growth (1.9%). Thus, year-on-year, price increases of 13.6 and 9 percent were recorded in these two sub-markets respectively.
However, house price growth has still lagged behind the general rise in consumer prices for the third quarter running. As a result, real prices at the beginning of this year were only at the level of two years ago, OTP Ingatlanpont underscores.
Different situations in villages and towns
Today, the market shows a distinctly different face in villages than in towns. While in the latter, the decline in nominal prices slowed down at the beginning of this year, in the villages, the decline has continued for the third quarter. Therefore, in smaller settlements, the average home is now around 5.6 percent cheaper than it was a year earlier.
Even if the overall picture is mixed, the slowdown in price falls in the first quarter may also indicate that the market might be over the nadir of the downturn. However, according to David Valkó, it is still too early to say.
“While the summer is a quieter time for real estate, the conditions that could combine to determine a rebound are very much in flux.”
These include, first and foremost, the fall in inflation and the timing of when lending rates could fall to the 6-7 percent level that could start to drive demand growth.
Call a “Spade a Spade” – let TRUTH be spoken, instead of by the Real Estate / Property operators – the soft veiled talk coming out into the public arena.
FACTUALLY – what is happening in Budapest, Hungary – is somewhat of a CARNAGE process.
The property market is OVERLOADED busting at its seams – growing of SELLERS.
This is NOT helped as more new flats, apartments, renovations – keep coming into the Property /Real Estate Market.
Buyers continue to turn away in Hungary and Foreign investment into the property market, remains at its lowest level for a decade.
“Sit on the Fence” – don’t rush into buying nor investiong, as the TONE of Hungary, its unstable Political position, its collapsing Economy, its collapsing currency, inflation still rising.
These are just few of the REASONS – to just sit back – be patient, let it all come to a head in Hungary – for better or for worse, depending MUCHLY – on the Orban factor – his on-going existence or disappearance – removal from POWER – he is the FOCUS, or the pivotal gauging stick, that has a massive physiological image presence INFLUENCE – on the FUTURE of the Property – Real Estate Industry in Hungary.
We know the Brand name Hungary – has been RAVISHED nearing destruction – by the present Prime Minister of Hungary and his Government.
Hungary – we are not being looked at favourable to make Investments from outside our boarders, which carries over – back into Hungarian Society – that rightfully, is not rushing in to make an Investment, that is property .
Wait, lower prices to come just be watchful and tolerant – observant to the name Victor Orban, using propaganda to Falsify – the factual situations, he makes comment or “other.”
As an American, your name makes me sick. Our country has been ruined by cowering to “patience and tolerance”. We are rotting inside because of “patience and tolerance”.
“Patience and Tolerance” is weapon being used against us. It is destroying the most free and powerful nation the world has ever seen.
All statistics collected since 1954 prove it. Our cities are unlivable, or only for the rich. Our homelessness rates have skyrocketed. Mentally ill roam our streets. Millions of illegal migrants, who are criminals, break our laws with impunity. Our crime rates are out of control. There is no social trust. We are morally degenerate, reprobate, and 33 Trillion in National Debt, on the edge of bankruptcy because of “patience and tolerance”.
Hungary’s President is a great leader. The best in recent history. He is logical rational, decisive person who is enforcing extremely tolerant and reasonable laws. He is protecting his country from evil destruction and eventual extinction.
The law of Nature takes no prisoners. Only a young brainwashed fool could see what has happened in Western countries and think this is good.
You know nothing about the Real Estate ponzi scheme. You know nothing about how it is used by the International Banking Cartel to hide inflation. create extreme wealth inequality. force people into being homeless, and create lifelong debt slaves.
There is more to life than money. You can always reject the EUR and create a new Hungarian HUF. Hungary has greatly changed from a ‘poor’ Eastern European country to prosperous safe Western Christian nation. Once upon a time, all of Europe felt like Hungary. But as Donald Trump famously said in a speech “Paris isn’t Anymore”.
Your President is a great man. You seem to forget the good things he did, and only focus on complaining and aspersions.